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Financial Headlines
2019 2018 2017 2016 2015
£’000 £’000 £’000 £’000 £’000
Revenue 101,095 96,312 92,363 87,920 83,052
Adjusted operating profit(excluding IAS 19 impact) 4,262 6,133 6,849 6,264 3,899
Adjusted profit before tax (excluding IAS 19 impact) 3,962 5,825 6,566 5,173 3,494
Impact of IAS 19 (1,386) (1,284) (1,025) (1,305) (919)
Profit before tax 2,576 4,541 5,541 3,868 2,575
Earnings per share ‐ diluted 24.3p 43.0p 49.0p 31.8p 20.1p
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Balance Sheet Highlights
2019 2018 2017 2016 2015£’000 £’000 £’000 £’000 £’000
Non‐pension assets – excluding cash 64,871 59,899 64,304 57,470 50,810
Non‐pension liabilities – excluding borrowings
(16,235) (15,585) (19,433) (17,019) (14,289)
48,636 44,314 44,871 40,451 36,521
Net IAS 19 pension deficit (after deferred tax) (18,798) (16,192) (18,421) (6,453) (11,554)
29,838 28,152 26,450 33,998 24,967Net borrowings (8,562) (4,806) (7,364) (7,305) (6,105)
Equity shareholders’ funds 21,276 23,346 19,086 26,693 18,862
Gearing % ‐ before IAS 19 deficit 21% 12% 20% 22% 20%Gearing % ‐ after IAS 19 deficit 40% 21% 39% 27% 32%Capital expenditure £’000 5,229 1,935 5,315 4,086 2,619
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Technical Fibre Products
• 6% year on year revenue growth, across all sectors
• Another year of growth in aerospace and defence markets including F35
• New products developed and approved for defence market and related licensing agreement signed
• New contracts agreed for supply of material for resistive heating products into domestic construction market
• Fuel cell product sales grown over two years and the outlook is positive with long term contracts in place for the automotive market
• On schedule to add a further line and facilities adding 50% additional capacity
TFP 2019 2018 % Change
Revenue 26,487 24,909 6%
EBITDA 9,665 8,189 18%Profit 8,883 7,449 19%
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Paper Products
• 4.3% year on year revenue growth, 11% in luxury packaging sector
• Continued focus on value growth and portfolio rationalisation
• New contracts won for luxury brand packaging paper
• High profile brands now using CupCycling™ by James Cropper in
luxury papers
• Pulp prices reached a peak in Q3 with £6.5M increase over past 2 yrs
• Advanced research into use of alternative fibres underway
• Investments underway to support value growth
Paper 2019 2018 % Change
Revenue 74,318 71,237 4%
EBITDA (533) 2,883 ‐118%
Profit (1,992) 1,468 ‐236%
3D Products (Colourform™)
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• Major global cosmetics brand business won
• Significant contracts have gone live at the start of the new financial
year
• Strong pipeline growth across beauty and wine & spirits
• Targeted on Western Europe environmentally conscious markets in
cosmetics, perfumes, wines and spirits
• Further 50% increase in capacity now in place
• Acceleration of pipeline conversion
3DP 2019 2018 % Change
Revenue 290 166 75%
EBITDA (1,905) (1,278) ‐49%
Profit (2,462) (1,639) ‐50%
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Strategic Investments
FOCUS INVESTMENT
TFP To increase capacity to meet future demand
Build additional production capacity and infrastructure
Market expansion in related technologies
Develop strategic partnerships with other organisations
Paper To enable a higher value product mix
Add increased capability to improve textures and finishes to further penetrate higher margin markets
To increase the use of alternatives to virgin pulp to provide independence to commodity prices
Extend capacity for processing waste materials to reuse as quality fibre
Colourform Contracts are Western Europe based for a UK source of supply, seeking strategic partnerships in China for Asia opportunities
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Outlook
• Each business focusing on high value long term growth markets
• TFP will continue to strengthen and grow its market position
• Paper to become more resilient to the pulp market, delivering increasing profitable growth
• Colourform will deliver meaningful growth and convert new higher value contracts
• Investing for growth
• Increasing focus on employee skills and wellbeing
• Ambition to become differentiated through sustainability credentials
• Confident to ensure sustained and sustainable growth for the long term
Supplementary Information:
Group Revenues 10Sales by Market ‐ TFP 11Sales by Market – Paper 12Profit & Loss 13Balance Sheet 14Cash Flow 15Facility Profile 16The Pension Deficit 17Pulp Price 18
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Group RevenuesGroup £'m 2019 % Sales 2018 % Change
UK 44.2 44% 43.0 3%
Europe 23.3 23% 20.5 14%
Americas 24.4 24% 23.1 6%
Asia 7.8 8% 7.6 2%
Other 1.5 1% 2.1 (30%)
Total 101.1 100% 96.3 5%
Paper £'m 2019 % Sales 2018 % ChangeUK 41.0 55% 40 2%Europe 16.3 22% 14.9 9%Americas 9.1 12% 7.8 16%Asia 7.0 9% 7.1 (1%)Other 1.0 1% 1.4 (29%)
Total 74.3 71.2 4%
TFP £'m 2019 % Sales 2018 % ChangeUK 3.1 12% 2.8 9%Europe 6.9 26% 5.6 24%Americas 15.3 58% 15.3 (0%)Asia 0.8 3% 0.5 51%Other 0.5 2% 0.7 (30%)Total 26.5 24.9 6%3DP £'m 2019 % Sales 2018 % ChangeUK 0.2 58% 0.2 (16%)Europe 0.1 19% 0 ‐Total 0.3 100% 0.2 45%
56% of revenues are export sales (55% prior year) Growth in Europe and the US
45% of revenues in Paper are export with strong growth in Europe and the US this year
88% of revenues in TFP are export, with strong growth in Europe this year
Technical Fibre ProductsThe broadest range of non‐wovens in the world
Fuel Cells11%
Aerospace & Defence
44%
Industrial,Infrastructure
& Other 45%
Industrial, Infrastructure & Other
Aerospace & Defence
Fuel Cells
INDUSTRIAL, INFRASTRUCTURE & OTHERWIND TURBINESBUSES & TRAINSCONSTRUCTIONMEDICAL DEVICES
TFP’s performance materials are designed to create a solution to high temperature insulation and fire protection
AEROSPACE & DEFENCECOMMERCIAL AIRCRAFTSATELLITESHELICOPTERSUAV’S
TFP nonwovens enable aerospace engineers to reduce weight by providing materials which are both lightweight and multifunctional
FUEL CELLSFIXED – Fuel Cells are used for primary and backup power for commercial, industrial and residential buildings and in remote or inaccessible areas
TRANSPORT – Fuel Cells are used to power fuel cell vehicles including forklifts, cars, buses, boats and submarines
Sales by Market
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James Cropper Paper
Luxury Packaging
32%
Marketing, Design &
Advertising21%
Art & Photography
16%
Publishing15%
Stationery, Office & Education
14%
Technical2%
Luxury Packaging Marketing, Design & Advertising
Art & Photography Publishing
Stationery, Office & Education Technical
Sales by Market
Leading speciality papermaker, producing premium, bespoke, coloured papers for many of the world’s leading brands
MARKETING, DESIGN & ADVERTISINGCOMMERCIAL PRINTERSMARKETING AGENCIESCOMPANY REPORTS
LUXURY PACKAGINGFASHION & CLOTHINGBEAUTY & COSMETICSJEWELLERY & WATCHESCONSUMER TECHNOLOGYALCOHOLIC DRINKS
PUBLISHINGBOOKBINDERSPUBLISHERSGREETING CARDSMAPS & CHARTS
STATIONERY, OFFICE & EDUCATIONSCHOOLSRETAILOFFICE SUPPLIERS
ART & PHOTOGRAPHYFRAMING & ALBUMSFINE ART REPRODUCTIONARCHIVAL
TECHNICALCONSTRUCTIONLAUNDRYMEDICAL
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Profit and Loss Summary
2019 2018 Change£'m £'m £'m %
Paper Products (2.0) 1.5 (3.5) (236%)
Technical Fibre Products 8.9 7.4 1.4 19%
3D Products (2.5) (1.6) (0.8) (50%)
Other Group expenses (0.2) (1.1) 1.0 85%
4.3 6.1 (1.9) (31%)
Net interest prior to IAS 19 finance costs (0.3) (0.3) 0.0 (3%)
Profit before tax prior to IAS 19 4.0 5.8 (1.9) (32%)
Net IAS 19 pension adjustments (1.4) (1.3) (0.1) 8%
Profit before tax 2.6 4.5 (2.0) (43%)
Operating profit before interest prior to IAS 19
14
Balance Sheet
Balance sheet 2019 2018
£'m £'m
Non‐pension assets ‐ excluding cash 64.9 59.9
Non‐pension liabilities ‐ excluding borrowings (16.2) (15.6)
48.6 44.3
Net IAS 19 pension deficit (after deferred tax) (18.8) (16.2)
29.8 28.2
Net borrowings (8.6) (4.8)
Equity shareholders' funds 21.3 23.3
Gearing % ‐ before IAS 19 deficit 21% 12%
Gearing % ‐ after IAS 19 deficit 40% 21%
Capital expenditure £'m 5.2 1.9
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Cash Flow2019 2018£'m £'m
EBITDA (excluding IAS 19 impact ) 7.2 8.8Pension deficit payments (1.5) (1.4)Increase in working capital (1.9) (0.4)Other (0.4) (1.1)
Net cash generated from operations 3.4 5.8
Capital expenditure (5.2) (1.9)Dividends (1.3) (1.1)(Decrease) / increase in loans 0.3 1.7Other (0.3) (0.8)Increase/(decrease) in cash (3.2) 3.6
Opening cash 5.6 1.9Closing cash 2.4 5.6
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Facility Profile
2019 2018 Change£'m £'m £'m
Cash and cash equivalents 2.4 5.6 (3.2)Borrowings: repayable within one year (1.5) (1.6) 0.1Borrowings: non‐current (9.4) (8.8) (0.6)
Net debt (8.6) (4.8) (3.8)
Borrowings: repayable within one year 1.5 1.6 (0.1)Borrowings: non‐current 9.4 8.8 0.6Facilities drawn down 10.9 10.4 0.6
Undrawn facilities 8.1 8.9 (0.8)Facilities 19.0 19.3 (0.3)
Cash and cash equivalents 2.4 5.6 (3.2)Undrawn facilities 8.1 8.9 (0.8)
Funds available at year end 10.5 14.5 (4.0)Borrowings: repayable within one year (1.5) (1.6) 0.1
Funds available in excess of one year 8.9 12.9 (4.0)
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The Pension Deficit
IAS 19 Valuation
The combined increase in the schemes’ overall deficit is principally caused by falling corporate bond yields pushing up liabilities, mitigated to an extent by reductions in life expectancy (which reduces liabilities) and strong asset returns.
The IAS 19 valuation includes a correction for sex‐inequalities inherent in Guaranteed Minimum Pensions (GMPs).
The bi‐annual IAS 19 valuations are applied for statutory reporting purposes only and hold no other value to the Company as IAS 19 requires the Group’s actuaries to make a number of assumptions on a very different basis to the on‐going valuations.
Ongoing Valuation
Work has commenced on the next – triennial “on‐going” valuation set for April 2019.
The on‐going triennial valuations are important to align the latest position on route to the longer term target. The April 2016 “on‐going” valuation resulted in contributions of £1.3m per annum to reduce the past service deficits and a further £0.16m per annum to meet pension protection levy payments, a total of £1.46m each year.
The scheme Trustees are supportive of the Group’s planned investment and capital expenditure programme to grow the business, which the Trustees see as key to ensuring the Group is capable of supporting the schemes in the future.
The IAS 19 pension valuation 2019 Triennial "on‐going" valuation ‐ 2016Staff Works Staff Works
Scheme Scheme Scheme Scheme£'m £'m £'m £'m £'m £'m
Discount rate 2.45% 2.45% 2.45% Discount rate 3.55% 3.55% 3.55%
Assets 53.0 57.0 110.0 Assets 44.4 47.9 92.3Liabilities (60.7) (72.0) (132.6) Liabilities (48.1) (60.0) (108.1)
Deficit (7.7) (15.0) (22.6) Deficit (3.7) (12.1) (15.8)Funding level ‐ % 87.4% 79.2% 82.9% Funding level ‐ % 92.35% 79.78% 85.37%
Both Schemes
Both Schemes
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Pulp price
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